Return on Investment (ROI)

Payback Periods or Return on Investment (ROI)

One of the most exciting financial aspects of owning a Solar Hot Water Heater is not
simply that it saves you money compared to other conventional hot water heaters, but
rather that it saves you enough money in just a few years to completely pay for itself. Essentially, over the course of a few years, your new Tri Solar Solar Hot Water Heater
will be free. How many home improvements can you really say cost you absolutely
nothing in the end? Not many.

The time that it takes for a Solar Hot Water Heater to completely pay for itself is known
as the System’s Payback Period or Return on Investment (ROI). All Solar Systems; Solar Hot Water, Solar Electric (PV), and most other Renewable Energy Technologies, have Payback Periods – in other words, like your stock portfolio or savings bonds, they are investments in the future – investments in knowing that sometime within the next few years, you are going to be getting something for nothing.

Solar retrofits for the typical household can average $6,000 for a solar water heater
and $12,000 for small scale photovoltaic. Custom designed and installed solar energy systems can be scaled up to increase energy output – depending on a household’s
energy needs. Greater cost savings are usually realized through an economy of scale: meaning the larger the solar energy system, the lower the cost of energy delivered for
the money invested. Keep in mind that after the initial investment, solar energy can be
much more economical than other energy alternatives since the resource needed to
power the solar energy systems – sunshine – is free and unlimited.

In the above example the a payback period of 5 years.
Please note, a higher consumer and increases in utility prices will lower your payback
period further.

Also, please note that this is only an example given for you to see how the payback of Tri Solar Solar Hot Water Heaters are calculated. Your own installation costs,
electrical costs, annual savings and incentives may vary (your specific payback period may increase or decrease). Typically, however, a Tri Solar
Solar Hot Water Heating System has a payback period of 3 to 10 years, though actual
results may vary.